Chancellor's Pro-American Stance Challenged by Latest in String of U.S. Spying Allegations

BERLIN—German Chancellor Angela Merkel is as friendly a European leader as Washington could wish for. But an ever-expanding row over U.S. spying is turning her pro-American stance into a liability at home.

On Wednesday, Ms. Merkel's government found itself on the defensive yet again over its support for closer cooperation with the U.S. Officials said for the second time in a week that prosecutors were investigating a German government employee suspected of spying for a foreign power. German media immediately pointed the...